Insurers can’t charge more just because you dropped coverage
in the past

(Salem) – Oregon Insurance
Commissioner Laura Cali is alerting consumers that auto insurers cannot charge
them more just because they dropped coverage at some point in the past. This
applies to consumers who dropped coverage and didn’t break the law by driving
while uninsured.

“Consumers who believe they are paying more because of a
legitimate lapse in coverage should call our consumer advocates and we’ll look
into it,” Cali said. “Agents should also help their clients understand when
they are required to have coverage and when they can safely drop coverage they
don’t need without being penalized.”

Motorists might drop coverage for many legitimate reasons –
they are not using their vehicle while away at college or on military service,
they are using alternate transportation, or they no longer own a car, for
example.

Yet, the Insurance Division’s consumer advocates say
consumers call regularly to say their rates increased after a lapse in coverage
or that they were told their premiums would go up later if they didn’t maintain
coverage in situations where coverage wasn’t required by law.

“We are committed to ensuring that Oregonians are treated
fairly by insurance companies and agents, and we will take action against
companies and agents who don’t comply with the law,” Cali added.

Insurance companies can require someone who is applying for
insurance to explain why they went without coverage. Many companies provide a
checklist so consumers can identify the valid reason that they dropped
coverage.

Consumer advocates answer questions about all types of
insurance and help with complaints from 8 a.m. to 5 p.m. Monday through Friday.
Call 888-877-4894 (toll-free).

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The Oregon Insurance Division is part of the Department of
Consumer and Business Services, Oregon’s largest business regulatory and
consumer protection agency.